KUALA LUMPUR: The ringgit ended the week on a greater footing in opposition to the US greenback, probably as a result of lower-than-expected first quarter (Q1) US gross home product (GDP) information.
SPI Asset Management managing director Stephen Innes mentioned the firmer ringgit might also be attributed to the native word’s oversold situation, higher energy prices, and a comparatively steady home threat atmosphere.
The US economic system posted a progress of 1.6% in Q1 versus a consensus forecast of two.5%.
The in a single day US information additionally revealed higher-than-expected inflation alongside the weaker-than-anticipated progress, triggering a sell-off in threat property and a spike in US Treasury yields.
“This state of affairs usually spells bother for the ringgit. However, the ringgit skilled a comparatively uneventful day and closed a contact stronger,” he instructed eNM.
Meanwhile, Bank Muamalat Malaysia Bhd chief economist Afzanizam Rashid mentioned the lower-than-expected US GDP information may have reignited hopes for an rate of interest reduce within the US.
At 6pm, the ringgit improved to 4.7650/4.7710 in opposition to the buck from yesterday’s shut of 4.7745/4.7775.
The ringgit traded higher in opposition to a basket of main currencies.
It rose vis-a-vis the British pound to five.9644/5.9719 from 5.9748/5.9786 yesterday, went higher versus the Japanese yen to three.0408/3.0451 from 3.0677/3.0698 and improved in opposition to the euro to five.1157/5.1221 from 5.1211/5.1243 beforehand.
The ringgit additionally traded principally higher in opposition to Asean currencies.
It appreciated versus the Thai baht to 12.8902/12.9120 in opposition to 12.8939/12.9087 at yesterday’s shut and was flat versus the Philippine peso at 8.26/8.27.
The native forex edged up vis-a-vis the Indonesian rupiah to 293.9/294.4 from 294.9/295.2 and elevated in opposition to the Singapore greenback to three.5021/3.5068 from 3.5120/3.5144.
